Greece: SAVED or not SAVED?
Cue the Rally Monkey!
Posted on 06/17/2012 8:05:24 AM PDT by tcrlaf
Here we go again, Groundhog Day. And likely with almost the same result as last time likely.
Interesting quote:
Condemning the outside interference in the election, Greek blogger Nick Malkoutzis, who is also deputy editor of deputy editor of Kathimerini English Edition, writes that "Europe that has become scared of democracy".
UK Guardian is Live-Bogging, with updates every minute: http://www.guardian.co.uk/world/greek-election-blog-2012/2012/jun/17/greek-elections-greece-polls-live?newsfeed=true
Keep posting — your thinking process is very good.
It’s Monday in Asia and their stock markets are giving the Greek Election outcome a vote of confidence.
“Asia Stocks Up in Relief Rally After Greek Vote”
http://www.cnbc.com/id/47852329
Greece: SAVED or not SAVED?
Cue the Rally Monkey!
Greece votes to stay in Europe, although a coalition government will be difficult.
Egypt votes to leave civilization.
France votes for Economic Suicide.
Quite the interesting day.
The French will do the usual French thing and capitulate without firing a shot. Then they will demand we bail them out...and we will, if Bozo is still da Boss.
Parties in favor of further bailouts for Greece have joined to make the bailouts happen after their election. After attentions turn back to our USA, the gigantic, shaky pile of bonds stuffed with foreign currencies here will start to freefall.
Federalized European debt is necessary though.
Is this “a federalized debt union in which eurobonds would be backed by all nations”?
Yes it is. Spain is in dire need of this. If they can’t tap Germany’s creditworthyness, the 7% interest rate on Spanish borrowing will destroy the country.
All these bailouts, especially like the most recent Spanish one with no specific stipulations, are creating a future problem not often discussed. European interest rates will skyrocket as new debt is piled on old with no specifics as to who is to be paid back first. Lenders will require huge rates before doling out more cash to countries because they don’t know who is in line to be paid back before them and how long it will take.
Federalized debt is the only answer to this problem at this point. It is common sense in some ways, a monetary union without fiscal unity is going to, by nature, always be on shaky ground except in the absolute best of times when money is absurdly cheap.
Sunday night/Monday morning stocks/futures/currency action is less a legitimate indicator of political or economic success than it is a case of rush in on the hype and sell to the greater fool come Tuesday (or whenever).
The situation from the stock speculator's point of view had been set up as a heads I win, tails you lose. Either the old bailout would continue (looks like that is the case) or a new, bigger one, would come forth. This type of thinking doesn't last very long. Reality intrudes.
Of course! That’s what the Market is all about - and as a devout Capitalist, I trade it. What a great country this is!
We did it by effectively shutting down non-governmental and non-military economy until after the war. Price controls, rationing... Complete governmental control of the economy was a large part of it.
Years ago it is my believe there was a Green Party (or maybe that was the color on all the signs) were they absorbed into another party?
Oh Puleeze! The greatest military action in the history of humankind on two fronts ( a half a world apart) did spring out of thin air. Fundamentally a superpower nation and its economy and its people ( civilian and military) supported the effort.
Here's a question for you. Do you think Nigeria could pull off a comparable military effort given price-controls, rationing, and complete governmental control of the economy? If you do your MBA has turned you into a fool.
If you’re referring to Greece, green is color on all PASOK signs. They are the socialist party and their leaders are largely responsible for this.
“Federalized debt” won’t solve the problem. The numbers are simply too large.
In order for the ECB (or whomever) to sell the amount of debt necessary to roll the insolvent sovereign debts forward, they’d need a world that doesn’t have debt deflation happening practically everywhere. That’s not the case just now. The US, UK and Japan are issuing tons of paper as well.
The single greatest mistake the ECB and Eurocrats made was thinking that spending would be unaffected by their collapsing demographics.
They were wrong.
Greece is just a side show. The real battle is here and now.
Stock futures mixed; Greek vote euphoria fades
http://www.freerepublic.com/focus/f-news/2896470/posts
At what point does kicking the can down the road end? At this point there is nothing much more than a nub where the foot was.
“Absolutely not. That is more of the same. Exporting this behavior globally while chasing money around the world until it’s all gone will leave the WHOLE world (instead of half of it) in this predicament. I’m sorry if I don’t want to sacrifice all the people, history, tradition, and art I love in the name of profit.”
And you expect that with this comment, other people should trust their life savings to you?
With France electing a socialist, the system simply isn’t workable. It’s no longer a matter of if, but when, the system will break down.
The only hope for the Euro is to continue to expand into other places, and use the money gained to try to keep things afloat. This is why Greece got in.
What we are going to see is America, Canada, all the fiscally stable nations being asked to contribute to the Euro to kick the can down the road.
Greece really isn’t that important. Cutting Greece out isn’t going to save the Euro. What is important is the project of subsuming the national legislatures to the Euro. This is why the endgame is to provoke this crisis here with the end results of stripping away the sovereignty of all the nations of Europe.
“Federalized debt is the only answer to this problem at this point. It is common sense in some ways, a monetary union without fiscal unity is going to, by nature, always be on shaky ground except in the absolute best of times when money is absurdly cheap.”
Heh, I didn’t even have to read ahead to predict you’d say this. Like I said, this is the end-game. Europe doesn’t really care about how much money goes up in smoke, if they can destroy all the nation states. For someone who’s blidingly opposed to ‘capitalism exports’, you sure seem supportive to the march of communism comrade.
But, that’s what all the ‘best schools’ are teaching these days. Please send me your card so I can be sure never to place my money where you manage things. Thank you.
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